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D. The tabulatian of the number of rriale and <br />female classes above and below the <br />predicted pay line is �►ade. <br />For example: <br />F above = 3 M above = 6 <br />F below = 1 M belaw = 4 <br />Total = 4 Total = 10 <br />E. The percentage of male and female classes <br />below predicted pay is calculated by <br />dividing the number of classes below by the <br />total number af classes in each group. <br />Female classes: i= 4 — 25% <br />Male classes: 4= 10 = 40% <br />F. The percentage of male cIasses below <br />p:redicted pay is divided by the percentage of <br />female classes below predicted pay. This <br />produces the "underpayment ratio." <br />40% = 25% =160% <br />G. An underpayment ratio below 80°/a shows <br />that female classes are compensated <br />"consistently below" male classes o� <br />compa.rable value. If�e underpayment <br />ratio is below 80%, �urther analysis is done <br />to determina if the underpayment of females <br />is statistically significant. Using the t-test, a <br />determination is made whether or not the <br />doliar difference is statistically signiiicant. <br />Details af the t-test can be faund on page <br />four. <br />Guide to Understanding Pay Bquity Campliance and Computer Reports — l l/lfl Page I7 <br />